Smart Grid Research from a Utility Perspective TCIPG Seminar – May 2, 2014 Richard Smith Director – Research and Development Ameren Corporation 1
Outline • Introduction • Ameren Overview - A representative U.S. utility • Industry Context • Smart Grid Technology – Business Perspective • Ameren Smart Grid Activities • R&D Needs 2
Ameren Overview A diversified regional electric and gas utility – 2.4 million electric and 900,000+ gas customers – 10,300 MW total electric generation capacity – 64,000 sq. mi. service area – ~$9.5 billion equity market capitalization – Component of S&P 500 – 8,500 Employees Rate-regulated Operations Ameren Missouri Ameren Illinois • Rate-regulated generation, • Rate-regulated transmission and transmission and delivery business delivery business • Serves 1.2 million electric and 126,000 • Serves 1.2 million electric and gas customers 827,000 gas customers • 2013 native load ~37 million MWh • 2013 native load ~37 million MWh • 10,300 MW of total generation capacity • 2013 generation of ~43.2 million MWh Ameren Transmission • FERC-regulated • Three MISO-approved multi-value projects Combined statistics: totaling >$1.3 billion (through 2019) at ATXI Electric transmission lines ~ 7,500 miles • Electric distribution system ~ 79,100 miles Additional projects totaling ~$1.0 billion Natural gas system ~ 21,500 miles (2013-2017) at Ameren Illinois 3
Ameren Missouri Generation Profile 1 - 2013 Capacity ~ 10,300 (MW) Generation Mix Nuclear Coal Hydro 11.6% 77.0% 3.7% Coal Pumped- 52.2% storage 4.3% Oil (CTGs) 3.0% Natural Gas Nuclear (CTGs) 19.0% Natural Gas 25.2% Landfill Gas Renewable 1.0% 0.1% 3.0% Generation mix is determined by electricity market economics and dispatch decisions made by RTOs on a daily basis 1 Excludes purchased power 4
Outline • Introduction • Ameren Overview - A representative U.S. utility • Industry Context • Smart Grid Technology – Business Perspective • Ameren Smart Grid Activities • R&D Needs 5
What Utilities Do....... Our value creation • proposition is Ownership of state-regulated energy infrastructure assets premised on effectively dealing • Large scale utility system operations with the complexities of • Asset management bringing it all together in a low • Capital management cost and reliable • Large scale system integration manner - for our customers As viewed through the lens of technology advancement 6
Key Utility Industry Drivers Customer of the Future Climate & Environmental Policy Capital Markets & Desired Investment Returns The Future of Coal Economic Growth Natural Gas What are the Nuclear Environmental Regulations implications KEY Renewable Energy for Government Ideology & Policy DRIVERS customers The Economy Natural Gas Prices and smart Power Prices grid? Reliability Transmission Technology Advancement Technology 7
Achieving Balance – Utility Priorities Customers and Communities Environment • • Reliable and affordable Cleaner generation and renewable • Quality service energy • Reduce environmental impacts Workforce Shareholders • • Safe working environment Predictable returns and earnings • Preferred employer growth • Solid financial management How does investment in smart grid help with these priorities? 8
Outline • Introduction • Ameren Overview - A representative U.S. utility • Industry Context • Smart Grid Technology – Business Perspective • Ameren Smart Grid Activities • R&D Needs 9
Potentially Transformative Technologies that could prove “transformative” to the traditional utility system in the long-term: NATURAL GAS NUCLEAR DISTRIBUTED NONTRADITIONAL ADVANCED EXTRACTION GENERATION ENERGY SYSTEMS COMPUTING • Small & GRID • Fracking and modular • Solar technologies • Microgrids AUTOMATION nuclear directional drilling • Energy storage • Net-zero energy reactors • Recovery of systems buildings • Smart methane hydrates • Small scale grid/analytics natural gas fueled • Automation Technical and Business Case Uncertainties 10
Smart Grid Long Term Vision A Transformed Electrical System that is Highly Flexible, Resilient and Connected and Optimizes Energy Resources - EPRI 11 Courtesy of EPRI Used with permission .
Technological “Grid Parity” = Utility Customer Price Average Residential Electricity Prices 1 Will a modern “grid” with DER 2 20 be price 15 competitive in ¢/KWh the future? 10 5 What will utility customers be 0 willing to pay? Price and reliability – the top two customer issues. 1 Source: Bureau of Labor Statistics and “2013 EEI Typical Bills and Average Rates" report. 2 DER = Distributed Energy Resources, e.g. DG, Community Energy Storage, PV, etc. 12
Long-term Challenge – e.g. PV with batteries Grid Parity? Not a near -term opportunity for our customers as a “component technology”
Smart Grid Long Term Vision How many of these technologies will make sense for deployment in the future? 14 Courtesy of EPRI Used with permission .
Technology Challenges/Opportunities • Avalanche of perspectives: • Journals, magazines and newsletters related to emergence of all kinds of technologies from generation to delivery, to customer end use. What is real? What has real business value? • “Hard Trend” - technology is changing • With and/or without utilities • Which technologies matter? Which ones will be at a scale that matters at reasonable cost? • Convergence of information, operation, and communication technologies • provides an architecture or platform for the future • Component technologies improving • Need for standards based approaches • A call for cleaner generation is still being heard • How can utilities leverage the technologies to benefit customers? 15
Key Business Questions • Will smart grid technologies continue to improve and will costs decline enough ? • What will be the pace of technological change and timing of market development? • Can investor owned utilities earn a return on investing in smart grid and extensions like “community power” systems? • How should we think about breaking “the grid” into smaller operating segments? (to what extent a “grid of grids”?) • Will smart grid technology applied to the distribution system provide a good platform for greater amounts of cleaner generation in the future? • Will utility customers choose to take advantage of emerging technologies? • What will regulators promote or allow in the future? In the long run, will customers be willing to pay for grid improvements and migration to a more interactive, cleaner operation based on advanced technologies? 16
Outline • Introduction • Ameren Overview - A representative U.S. utility • Industry Context • Smart Grid Technology – Business Perspective • Ameren Smart Grid Activities • R&D Needs 17
Ameren Smart Grid Related Activity • AMI (750,000 meter installations in progress) • Technology Application Center “test bed” • Collaboration with University of Illinois • On-grid testing and evaluation services • Opened for business - August 2013 • Ameren Missouri “test bed” in St. Louis County • Automated switching, auto cap banks, volt/var control, sensors, PMUs, substation automation • Advanced Distribution Management System project – Missouri and Illinois • Plug-in vehicle programs • EPRI Smart Grid Demonstration member • CVR Pilot Project at AIC 18
Technology Application Center 19
Technology Application Center – Equipment Examples Testing Equipment Platform Voltage Regulators Relay Panels Distribution Smart Appliances SCADA Panel AMI Metering Bank 20
Selected Ameren R&D Projects • Participant in EPRI’s Smart Grid Demonstration Project Initiative • Ameren Illinois CVR Pilot • Energy Efficiency Demo - LED Lighting Ballwin, Missouri %MW / % ∆𝐖 CVR f = 0.97 EPRI smart grid updates available at: Cove www.epri.com EPRI Rover 21
Ameren Microgrid, DG Pilot Projects Bloom Energy 3 MW Brookside Substation Fuel Cell Demo Project – Delmarva/EPRI Missouri S&T Solar Village Microgrid Project • Rooftop Solar PV ClearEdge • A123 Li-ion Battery 5 kW Unit System • ClearEdge 5kW Fuel Cell • Lewis & Clark Community (community power) College 22
Outline • Introduction • Ameren Overview - A representative U.S. utility • Industry Context • Smart Grid Technology – Business Perspective • Ameren Smart Grid Activities • R&D Needs 23
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